One of the reasons we know that international labor mobility has been higher at other times is because

Geraldo wants to purchase Marlena's 1914 prairie-style house so he can tear it down to build a 10,000 square foot home with space to operate his hypnotherapy practice

Marlena's great-grandfather built the 1914 house and she has no intention of selling it, especially to someone who wants to tear it down. The mayor, who is a friend and client of Geraldo, talks to Marlena and tells her that since Geraldo's proposed house would generate 20 times as much property tax for the city as Marlena's current house does, Marlena will need to either tear down the house herself and build a house comparable to the one Geraldo wants to build, or eminent domain will be used to force the sale of her house. In this case, the threat of eminent domain A) is in the best interest of society in general. B) would move a resource from someone who values it less to someone who values it more. C) gives people incentives to make second-best choices. D) would increase the size of the economic pie since property-tax revenues would increase.

The equilibrium compensating wage differential between two occupations in the same city is $10 per hour. Both occupations have equivalent training requirements. Shannon works in the higher-paying occupation and would have been willing to do so even if the compensating differential was $5 per hour. Therefore,

a. Shannon will migrate to the lower-paying occupation b. Shannon must have a greater distaste than the typical worker for the nonmonetary characteristics of her occupation c. the equilibrium compensating wage differential is more than enough to prevent Shannon from moving to the other job d. the higher-paying occupation cannot have a perfectly competitive labor market e. Shannon must have a greater preference than the typical worker for the lower- paying occupation